Key Individuals chapter 5

Source: Section 8,13 and 14 of FAIS Act and BN 106

Change in personal circumstances of KI may affect fit and proper status

Renders person not to be fit and proper and cannot take part in conduct or management or

oversight of FSP

Source: Louis Wessels Legal Adviser FSB and Section 8 (4) (b) (iii)

Source: Section 13(2) of FAIS Act

Business changes reported in 15 days

Business Name

Business address

Compliance Officer

Any contact details

Banking details

Shareholder

Representatives

Auditors

Fixed business address

Storage and filing

Policies, procedures and systems

Internal control structures , procedures

and controls

Access rights and data security

Disaster recovery and back ups

Source: BN 106

Communication facilities

Bank account

3rd party SLA

Segregation of duties

System application testing

Appropriate FAIS training

Training advice and

intermediary services

Business Continuity

Plan

Systems, controls and compliance measures

Financial and system

procedures for

accounting

Risk control measures accurate

timeous and complete

processing of data

Guarantees and

professional indemnity

FSP to have and maintain operational

ability

Source: Section 19 of FAIS ACT

Registrar may impose conditions and restrictions on authority granted by license having regard to:

Facts and information

Category of financial services

Category of financial services providers

Advisory Committee Guidelines

After date of granting license KI replaced, appointed or personal situation changes and not fit and proper person

cannot manage FSP

Source: Section 8 (4) of FAIS ACT

Provider to maintain comprehensive complaint policy

Transparency, accessible facilities Procedures at any office and fair outcome

Investigate and respond promptly

Not resolved satisfactorily for client Advise client further steps ito FAIS

Client requested to lodge complaint in writing

Maintain record for 5 years Handle complaint timely and fairly

Source: Section 16,17 of Code of Conduct

Internal complaints resolutions system and procedures must

provide for

Available and adequate manpower

Adequate training of all relevant staff who know FAIS

and Code complaints procedures

Responsibilities and mandates are delegated and non routine serious complaints escalated

Internal follow up to ensure avoidance of occurrence and

improve processes

Source: Section 18 of FAIS Act

ComplaintsResolution

After receipt and recording of complaint it will be forwarded to relevant person appointed to consider resolution

The complaint must receive proper consideration. Appropriate management controls in place.

Client informed of results, outcome not favourable to client, full written reason furnished and complaint

may go to Ombud within 6 months

Have summary of provisions of Act applicable if complaint dismissed

Include name , address and contact details of Ombud Must stipulate that all complaints reduced to writing and receipts acknowledged

Source: Section 16,17 of Code of Conduct

An advertisement by a provider must not contain any statement, promise or forecast which is fraudulent untrue or

misleading.

Any performance data, illustration or forecast must include references to source and date as well as clearly state that

they are not guaranteed and are for illustrative purpose only.

Services advertised by telephone must have electronic voice logging. Where no financial service results records may not be maintained after 45 days. If promotion results in rendering of financial service full details provided to client in writing within

30 days.Public radio advertisement must include business name of

provider

Source: subsections 14 to 15 in General Code of Conduct

Direct marketer must furnish:Business or trade name, confirm it is authorised FSP,Telephone contact details, compliance department

details, whether professional indemnity is held

Providing advice direct marketer must:Establish appropriateness of product regarding clients

risk profile, financial needs and circumstances ands furnish client with business details and product details

Take reasonable steps to establish whether financial product is wholly or partially a replacement of existing

product, is so, inform client of actual and potential financial implications ,costs and consequences before transaction

concluded

Source: subsections 14 to 15 in General Code of Conduct

Prior to conclusion of transaction, where information provided orally, provide in 30 days:

Telephone details of compliance dept, extent product realisable, manner benefits will be paid, restrictions or penalties for early

withdrawal, charges and fees levied, commission fees payable, on request investment performance ,non compliance with contractual

obligations by client, premium increase details, terms and conditions , loadings, guaranteed minimum benefit and recordings will be available

on request

Provide record of adviceRecord all telephonic conversations and have systems and procedures in place to record conversations and ensure all

information provided to client in writing within 30 days

Source: subsections 14 to 15 in General Code of Conduct

The following can cause business risk to a FSP:

•A disruption to ability to continue to service clients

•A loss of key clients in practice

•A concomitant loss of practice income

•Exposure to potential regulatory action

•Private litigation for failing to satisfy possible legal, regulatory or

contractual duties to clients

•Irreparable loss of business reputation

Source: Sections 18 and 19 FAIS Act and BN 106